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PETALING JAYA: UMW Toyota Motor Sdn Bhd is maintaining its sales target of 93,000 Toyota and Lexus cars this year despite the potentially adverse impact of the responsible lending guidelines on the total industry volume (TIV) for the automotive sector.

UMW Toyota Motor deputy chairman Takashi Hibi said the impact of the guidelines would be minimal on the company's vehicle sales.

“Our customers have fairly good credit ratings. Sales will be boosted by the introduction of new Lexus and Toyota models,” said Hibi during the launch of the new Lexus GS mid-sized luxury sedan.

Value investing need discipline, so is the punting/gambling. When we trade successfully a few times, there is tendency for us to get greedy. We might be carried away by our greed & are tempted to increase leverage exposure or bet amount.

In garlic's opinion, increasing bet size or leverage exposure is the stupidest thing to do based on garlic experience so far ( hitting wall a few times ) - reason is simple, it takes a few successful trades for you to accumulate certain amount of profit but it only takes you a failed trade to wipe out your profit & capital totally.

So, stay cool. Maintain the size of the bet or leverage exposure. Look for re-entry for UMW-CN again :)

KUALA LUMPUR (Oct 4, 2013): UMW Oil & Gas Corp Bhd (UMW-OG), which is slated to list on the Main Market of Bursa Malaysia on Nov 1, 2013, is looking to raise as much as RM1.71 billion in its initial public offering (IPO), making it the country's largest offering and eighth in Asia-Pacific ex-Japan this year.

UMW-OG is expected to have a market capitalisation of about RM6.1 billion upon listing based on an IPO price of RM2.80 per share.

UMW-OG's IPO involves an offering of up to 843.18 million shares, comprising an offer for sale of up to 231.38 million shares and a public issue of 611.80 million new shares.

The group is selling 648.6 million shares under its institutional tranche and 194.58 million shares for retail investors.

Parent UMW Holdings Bhd will pocket up to RM647.86 million through the offer for sale, and will remain as the largest shareholder in the oil and gas unit, controlling a 55% stake post-IPO.

According to Reuters, quoting a source, the institutional portion has been oversubscribed by more than 10 times, mostly at the top end of a range set at between RM2.70 and RM2.80 per share yesterday. The final pricing is expected to be fixed on Oct 17.

It is understood that UMW-OG has secured 21 cornerstone investors, of which 90% are local firms such as Amcorp Group Bhd, the Employees Provident Fund and Permodalan Nasional Bhd, while the balance 10% comprise foreign funds like FIL Investment Management (Hong Kong) Ltd and Fullerton Fund Management Co Ltd.

"With UMW-OG's planned debut on Bursa Malaysia soon, we will continue to strive for superior operational and financial performance to achieve sustainable long-term growth," its president Rohaizad Darus told a press conference after the launch of its prospectus here yesterday.

"Our regional expansion is also on track with the award of three new contracts in Vietnam in the last six months, in addition to another contract in Thailand, which bodes well for the group's prospects moving forward," he added.

The oil and gas outfit will use a major portion of its IPO proceeds for the acquisition, upgrading and maintenance of drilling rigs, hydraulic workover units and machineries for oilfield services.

The remaining proceeds will be used for the mobilisation and demobilisation costs for its drilling rigs as well as to repay the amount owing to UMW Holdings.

by convention, the 3rd quarter will be the strongest quarter for UMW bhd based on previous results, can expect the dividend + special dividend to be announced this coming quarterly result after successful listing of UMWOG

After gaining clarity on the earnings of UMW Oil and Gas Corp Bhd (UMW O&G) with its listing exercise recently, the investment bank expects UMW O&G (a 61% owned subsidiary of UMW), to grow its core earnings by a three-year compounded annual growth rate (CAGR) of 71% over FY12-FY15.

The implementation of the goods and services tax from April 2015 may lead to lower car prices. This may also lead to an overhang in FY14 car sales and thereby pose a downside risk to the earnings forecast.

With a revised net asset value (RNAV)-based target price marginally to RM12.55/share (from RM12.44/share), the investment bank reiterated the rating given heightened competition within the automotive sector in the next one year.